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IMF projects India to grow at 6.6% in FY2025-26, fastest among major economies

The IMF’s latest World Economic Outlook report predicts India’s economy will expand by 6.6% in FY2025-26, outpacing global and Chinese growth. Strong domestic demand, investments, and policy stability are expected to keep India the world’s fastest-growing major economy despite global challenges.
Post Published By: Karan Sharma
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IMF projects India to grow at 6.6% in FY2025-26, fastest among major economies

New Delhi: The International Monetary Fund (IMF) has said in its latest World Economic Outlook report that India will grow at the rate of 6.6 percent in the financial year 2025-26.

This rate not only reflects India’s strong economic position but also shows that India will still remain the fastest-growing economy in the world.

IMF has made this estimate keeping in mind the economic growth in India in the first quarter. According to the report, the main reasons for this are domestic demand, investment, and strength in the services sector in India’s economy.

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India’s position in the global scenario

While many big economies of the world are growing at a slow pace, India’s growth rate remains consistently high. The IMF estimates that India’s growth rate may decline slightly to 6.2 percent in 2026, but it will still be much higher than China’s projected growth rate (4.8%).

This means that India will remain the main engine of global economic growth in the years to come.

Limited impact of US tariffs

Recently, America has imposed high tariffs (import duties) on India, which may increase trade pressure in some areas. Nevertheless, the IMF report suggests that these tariffs will have a limited impact on India’s overall economy.

According to the report, India has strong domestic consumption, a stable investment environment, and growth-oriented government policies, which have been able to offset external shocks.

Comparison with other countries

According to the IMF, the average growth rate of the global economy is expected to be only 3.2 percent in 2025-26, while it may fall to 3.1 percent in 2026.

From this it is clear that India’s growth rate will be almost double the world average. Among advanced countries, the growth rates of Spain (2.9%), the US (1.9%), Brazil (2.4%), Canada (1.2%), and Japan (1.1%) are likely to be much lower than India’s.

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This IMF report strengthens international confidence in India’s economic policies and long-term development strategy. Despite global uncertainties, trade challenges, and geopolitical tensions, India is maintaining its economic momentum.

If this trend continues, India will not only become the economic power of Asia in the coming years but will also prove to be a major pillar of global development.

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